Arnold Stands Firm On The Car Tax (Take that George Skelton and LA Times!)

Los Angeles Times ^ | 10/31/03 | Peter Nicholas And Evan Halper

[goldstategop]

Various state and local officials want Schwarzenegger to preserve the car tax rate that tripled under Gov. Gray Davis, contending that the money pays for lifesaving fire and emergency services now being marshaled against the wildfires. They are also hoping Schwarzenegger will raise taxes under a caveat that he carved for himself: Such a move would be considered in the event of a terrorist attack or natural disaster.

"I don't believe that it's in the moral fiber of the Legislature or the governor-elect to compound the tragedy experienced by thousands of Californians by reducing the level of public safety on which we rely," said Assemblyman Mark Ridley-Thomas, a Los Angeles Democrat.

Few officials expect the incoming governor to abandon altogether his campaign pledge to slash the vehicle license fee, though they would welcome some flexibility. During one of Schwarzenegger's final campaign rallies, a crane operator dropped a wrecking ball onto an Oldsmobile Cutlass, punctuating Schwarzenegger's commitment to flatten the car tax.

Will the governor-elect heed calls to preserve the threefold increase in the vehicle license fee that raises $4 billion for local government?

"In a word, no," said H.D. Palmer, a Schwarzenegger spokesman.

Los Angeles Mayor James K. Hahn, a member of the governor-elect's transition team, said he has spoken privately to Schwarzenegger and left the conversation convinced that he would not budge.

"I don't believe that the governor-elect is going to change his mind," said Hahn, whose city receives about $175 million a year in car tax revenue. ...

For his part, Schwarzenegger said that with the fires still burning, it is too early to say if it is time to raise taxes.

After a helicopter tour Thursday over fire-ravaged parts of the San Bernardino National Forest, Schwarzenegger told reporters:

"We are right now in the middle of the disintegration. I'm not going to make these decisions now. I'm thinking only about how proud I am of the firefighters."

[goldstategop]

The Democrats and local government unions want to keep the car tax. Arnold is standing firm. He's right its too early to talk about raising taxes - not just the car tax. Arnold, you said you're a conservative. Now here is your chance to demonstrate on fiscal matters, that you mean it. The people of California are with you and we're thinking of those on the front lines battling the wildfires and saving people's businesses, homes, and lives.

[carl in alaska]

Arnold will not back down on the car tax. He'll get some $ from Washington to allow him to rescind the car tax. The tripled car tax is crushing the sales of high-priced cars and SUV's in California. It would be much wiser to close a few tax loopholes for various special interest groups if we must raise revenues. Arnold "will be bakkkk" from Washington with a handful of dollars.

[witnesstothefall]

I can think of about 700,000 acres of California that now require a lot less or no money for fire prevention or control.

[engrpat]

I have heard that with the advent of the new improved car tax that new car sales in California are off something like 30% or more. The loss of sales tax revenue is greater than what the increase fees would bring. Tax it too high and people won't buy. This reminds me of the extra tax on yacths. The boat yards shut down, craftsmen lost their jobs and the buyers, well they went overseas to get their toys. Amercia's loss.

[Egon]

"I don't believe that it's in the moral fiber of the Legislature or the governor-elect to compound the tragedy experienced by thousands of Californians by reducing the level of public safety on which we rely," said Assemblyman Mark Ridley-Thomas, a Los Angeles Democrat.

Away from me, Wormtoungue!

[ken5050]

Actually, you're misstating the Dems position..they want Arnold to repeal the car tax, but impose a new tax on automobile tires, one based upon size..

[Amerigomag]

My registration renewals are comming up starting in early 2004. I just received notification by mail of my first renewal due in early January.

Is anyone aware of the proceedure for renewal should Schwarenegger manage to recind the increases.

Do we pay the full amount and then wait foolishly for a refund? What will become of the overpayments that were made since October 1? Is it necessary to file the "protest" form when making payment to qualify for a refund?

Any info?

[DoctorZIn]

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[Ciexyz]

This reminds me of the extra tax on yachts. The boat yards shut down, craftsmen lost their jobs and the buyers, well they went overseas....

I used to drive by a Boating Salesyard (in Pittsburgh on Saw Mill Run Blvd outside the Liberty Tubes). Beautiful yachts and smaller boats were on display in their huge display docks, right out in the open where people driving by could look down and enjoy seeing those beautiful boats. As soon as that tax came in...the yard shut down. A shame for that business and a loss to the community.

[Ciexyz]

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[marsh2]

Technically, the vehicle tax is not being raised. It is being restored. The VLF is a tax on personal property that provides about 1/4 of the General Fund revenue used to pay for basic County services. (Police, fire, D.A., assessor, auditor, tax collector, clerk, recorder etc.)

When California had a surplus of revenue, it cut the tax to the car owner and backfilled the resultant lost revenue to the Counties. Now the State no longer has the revenue to provide the cut and backfill the Counties. In its restoration of the full tax, it has already imposed several months delay in revenue stream to the Counties evoking substantial cuts in local revenue and the budgets funded by that revenue.

If the new Governor restores the cuts to the car owner without restoring the backfill to the Counties, he does it on the backs of the Counties and local services, not the State budget. We are already experiencing freezes, layoffs and reduction in services and hours. Further reductions to County revenue will only result in a public safety crisis and inability of essential local government services to continue to operate.